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Compound Interest

Discussion in 'Accounting, Tax & Legal' started by NickM, 24th Nov, 2006.

  1. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
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    321
    Location:
    Sydney
    The ATO have released ID 2006/298 which discusses the tax deductibility of capitalised interest on an investment LOC

    NickM
     

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  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Location:
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    Well that should clear things up for a lot of people - thanks Nick.
     
  3. julia

    julia Active Member

    Joined:
    3rd Jan, 2007
    Posts:
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    Location:
    Beachmere Qld
    Nick & Sim,
    ID 2006/298 was withdrawn by the ATO on 1st December, 2006. Newsflash 138 (look under free publications) on bantacs.com.au has an article about my discussion with the ATO on why it was withdrawn. In short it is not that black and white, if a loan is advertised for its tax advantage and that is the dominant purpose the taxpayer enters into the loan it will be caught no matter what the name.

    Julia
    bantacs.com.au